No matter how "cheap" the deposit, a penalty of up to 3 times the value of the deposit for not correctly dealing with the same will have a huge impact on a landord's investment.
Not only does the deposit need to be registered with a protection scheme, prescribed information (P.I.) must also be given. Failure to provide the P.I. can lead to a penalty which, on average in Blackpool, would be over £1500.00.
Tenancy deposits in Blackpool over the last year were more than a third cheaper than the average for England and Wales, according to statistics released by The Deposit Protection Service. By law, landlords must submit deposits from tenants to an authorised tenancy deposit protection scheme. Those submitted to the DPS for properties with Blackpool postcodes between April 2014 and March this year averaged £506.17, which is £314.55 cheaper than the national average.